Question

Suppose a particular consumer has 8birr to be spent on two goods, A and B. the unit price of good A is 2birr and the unit price of good B is 1birr. The marginal utility(MU)she gets from consumption of the two goods is given below.
Quantity MUA MUB
1 36 30
2 24 22
3 20 16
4 18 12
5 16 10
6 10 4
a. Based on the cardinal utility analysis, what is the combination of the two goods that gives maximum utility to the consumer
b. What is the total utility at the utility maximization level

Answer 1

Answer:

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Explanation:

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